Search results for Personal Debtor Protection Act
AI & Enterprise
FSS urges banks to build AI internal control systems
South Korea\'s Financial Supervisory Service urged banks to build internal control systems aligned with the expanding adoption of AI, calling for governance and control standards to manage hard-to-predict risks in advance. The watchdog held an internal control workshop in Seoul attended by about 170 officials from eight bank holding companies and 20 banks. It also shared findings from governance checks and internal control reviews, citing cases of debtor rights violations and calling for tougher follow-up inspections on business loans.
Finance
Overdue debt collection practices to change after tax breaks on written-off loans
South Korea\'s financial regulators plan to curb the practice of financial companies repeatedly extending the statute of limitations on overdue loans while continuing collection efforts after receiving tax benefits. Under revised rules, firms will need to let the statute of limitations run its course when it first comes due to have personal overdue loans recognised as losses. The changes also tighten requirements for selling such debts, introduce reporting and disclosure systems, and revise related guidelines and supervision rules.
Finance
KB Kookmin Bank to write off 278.5 billion won in debt for financially vulnerable borrowers
KB Kookmin Bank said on Tuesday it will provide special debt relief worth 278.5 billion won for 12,433 financially vulnerable borrowers. The plan combines reductions in principal for short- and mid-term delinquent claims with the cancellation of long-term delinquent debt. Eligible borrowers include socially vulnerable groups with loans in arrears for more than 5 years and principal of 50 million won or less, and those subject to debt adjustment under the Personal Debtor Protection Act.
